March 02, 2007	Friday	Safar 12, 1428

LONDON, March 1: World oil prices pulled back slightly on Thursday, after hitting 2007 peaks above $62 earlier in the day as traders focused on weakening US energy stocks and shrugged off the global equities rout.

Oil prices had spent much of Wednesday with strong gains before slipping lower in late European trading hours as investors took profits.

In London, the price of Brent North Sea crude for April delivery eased two cents to $61.87 per barrel in electronic deals, after earlier striking $62.74 -- the highest level since December 26.

New York’s main oil futures contract, light sweet crude for delivery in April, slipped 34 cents to $61.45 per barrel in pit trading. The contract earlier hit a peak of $62.49 which was last seen on December 26.

Earlier this week, crude futures had sustained heavy losses amid steep falls on global stock markets, but have since largely recovered as traders took the view that the Chinese economy -- and its voracious demand for oil -- was strong enough to withstand the dive in stock prices.

“The sharp tightening in the crude market has helped to make oil prices resilient thus far to jittery equity markets,” said Barclays Capital analysts.

On Thursday, traders absorbed news that US inventories of key refined products including heating oil had slumped, while crude oil reserves surged higher last week.

The figures from the US Department of Energy, announced on Wednesday, also showed that US crude oil reserves had risen by 1.4 million barrels in the week ending February 23 to 329.0 million barrels. Analysts had predicted a larger gain of 1.9 million barrels.

The report also showed that distillate inventories, which include heating oil and diesel, had fallen 3.8 million barrels to 124.5 million as cold temperatures and snow continued to affect many US states, especially in the energy-hungry northeastern region.

Gasoline or petrol reserves meanwhile fell 1.9 million barrels last week to 220.2 million, against forecasts that stocks would drop by 1.5 million barrels.

Over the next few months, the oil market’s focus will begin to switch from heating oil as the northern hemisphere winter draws to an end, to gasoline stocks as the US driving season approaches.—AFP